Fight those who do not believe in Allah or in the Last Day and who do not consider unlawful what Allah and His Messenger have made unlawful and who do not adopt the religion of truth from those who were given the Scripture - [fight] until they give the jizya willingly while they are humbled. [ S.I Qur’an 9:29 ]
Be used to justify an Islamic State in presenting the Ultimatum of:
2.) Pay jizya
To neighbouring groups of peaceful, non aggressive jews and Christians?
I’ve read a translation of Ibn Kathir’s explanation of the first part of the verse regarding fighting the people of scripture:
(Fight against those who believe not in Allah, nor in the Last Day, nor forbid that which has been forbidden by Allah and His Messenger, and those who acknowledge not the religion of truth among the People of the Scripture,) This honorable Ayah was revealed with the order to fight the People of the Book, after the pagans were defeated, the people entered Allah's religion in large numbers, and the Arabian Peninsula was secured under the Muslims' control. Allah commanded His Messenger to fight the People of the Scriptures, Jews and Christians, on the ninth year of Hijrah, and he prepared his army to fight the Romans and called the people to Jihad announcing his intent and destination. The Messenger sent his intent to various Arab areas around Al-Madinah to gather forces, and he collected an army of thirty thousand. Some people from Al-Madinah and some hypocrites, in and around it, lagged behind, for that year was a year of drought and intense heat. The Messenger of Allah marched, heading towards Ash-Sham to fight the Romans until he reached Tabuk, where he set camp for about twenty days next to its water resources. He then prayed to Allah for a decision and went back to Al-Madinah because it was a hard year and the people were weak, as we will mention, Allah willing.[ Excerpt from a Translation of the Tafsir of Ibn Kathir of 9:29 ]
But it is not mentioned if the people of scripture are to be fought until they pay the jizya in self defense or in an aggressive way,. Sorry if this question appears too often.